Indian Equity Market Outlook

March 2, 2024

The Indian equity benchmarks, Sensex and Nifty, are expected to open on a negative note today, following gains in GIFT Nifty, which is trading lower at around 25,232.

Previous Trading Session

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The Indian benchmark indices, Sensex and Nifty, ended lower on February 27, with Nifty closing below the 25,200 mark amid broad-based selling across sectors, except IT and media. The market remained under pressure throughout the session due to subdued global cues and rising geopolitical tensions, keeping investor sentiment cautious.

Market Performance

At close on February 27, the Sensex was down by 961.42 points or 1.17 percent at 81,287.19, while the Nifty was down by 317.90 points or 1.25 percent at 25,178.65. The Nifty Midcap and smallcap indices also declined by 1% each.

Global Market Update

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Asian Equities tumbled on Monday due to escalating tensions between Iran and U.S.-Israel, raising concerns over energy supplies. US Equities suffered their largest monthly percentage declines in a year, with Financial and tech stocks being hit hard by persistent investor worries.

Key Global Market Indicators

• Dow Jones Industrial Average: down by 521.28 points or 1.05% to 48,977.92
• S&P 500: lost 29.98 points or 0.43% to 6,878.88
• Nasdaq Composite: lost 210.17 points or 0.92% to 22,668.21

Currency and Bond Market Update

The dollar jumped on Monday as investors headed for safety after the U.S. and Israel bombed Iran. The US Treasury 10-year yield and 2-year yield jumped more than 2 basis points to 3.96% and 3.39%, respectively.

Currency Market Performance

• Asian currencies were trading lower in early trade on Monday, with the South Korean Won leading the losers, followed by the Philippines Peso, Thai Baht, China Renminbi, Indonesian Rupiah, and Japanese Yen.

Commodity Market Update

• Oil prices surged on Monday as military conflict in the Middle East looked set to last weeks, sending investors flocking to the relative safety of the dollar, gold, and bonds.
• Gold prices rose by up to 2% on Monday after the U.S. and Israel launched major strikes on Iran.

Fund Flow Action

On February 27, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,536 crore, while Domestic Institutional Investors (DIIs) bought equities worth over ₹12,000 crore.